The volatile rand is creating havoc for companies and investors. It lost 23% of its value in seven weeks, starting in early May, and has since regained nearly 10% of its value, trading at about R6,86 to the dollar recently. This is good news for exporters and commodity producers, who complained for years that the strong rand was hurting them.
Business is helping tackle crime, with several initiatives by Business Against Crime bearing fruit. Vehicle theft and hijackings are down about 16% over the past five years from about 115 000 in 2001 to 96 000 last year. Even more impressive is the 30% reduction in Gauteng hijackings last year.
Up to 450Â 000 chanting soccer fans will be shoehorned through South Africa’s airports during the 2010 World Cup Soccer tournament, creating a logistical nightmare for the airports, immigration officials and police. Tourists looking for a piece of African tranquillity are likely to plan their trips on either side of the event so as to avoid the crush.
Three months after achieving straight As in his performance review as CEO of Johnnic Communications, Connie Molusi was suspended on full pay ”pending the outcome of the hearing to consider his performance”, according to a statement released by the group recently.
Businesses are bracing themselves for a rand at R8 or even R8,50 to the United States dollar after the shock 20% weakening in the local currency since early May. The Reserve Bank is likely to tighten interest rates aggressively from here to stem the slide in the rand. Some economists are forecasting a further 1,5% to 2% increase in rates over the next year.
Gas supply in the Gauteng area is expected to return to normal over the next few days after a series of mishaps that has throttled supply since the onset of an early winter in May. Afrox, the market leader in bottled gas, says it has supplied an additional 50 000 9kg bottles to alleviate the shortage.
Sydney Maree, the former 1 500m world-record holder, is running the race of his life. The former champion athlete and one-time head of the state-owned National Empowerment Fund (NEF) appeared in court recently in an effort to clear his name of charges that he stole R1-million from the NEF.
The battle for South Deep, billed as the last piece of gold real estate on God’s green earth, could get a lot more interesting should AngloGold enter the fray alongside Harmony and Gold Fields. All three mining houses already own pieces of the gold mine through Western Areas, which has a 50% share of the mine.
Mild panic has gripped the world’s financial markets as the stock market rout that started in early May continued, with many stocks losing up to 10% of their value in as many days. Asset managers attempted to douse the growing panic by advising investors to stay calm, though those who heeded the same advice in 1998 had to wait nearly two years to recover from the 40% drop in stock prices.
Wine, one of the great South African export stories of the past decade, is beginning to lose its fragrance. Most South African wines are now being exported at a loss as profit margins tumbled from the giddy heights of 2001, when the rand traded at R18 to the pound and R12 to the United States dollar.